Right Now Technologies Harvard Case Solution & Analysis

Right Now Technologies

As stated by Right Now’s inner forecast, the income development rate for the new methodology is 67%. In the master forma harmony sheet, I believe that transport for credit, long term debt and shareholders’ equity remain same. Different accounts develop in the same speed as income. In exhibit1, Right Now doesn’t compel reason extra store to backing the methodology over 2004 instead, it might reimburse its debt.

As a product company, Right Now needs huge amount for conceded revenue, and this obligation assumes a paramount part similarly as a financing device around. However, the growth rate may be not concerning illustration as normal therefore, the revenue added up in the year 2004 will reduce.

The acquirer might have been eager to pay differently with respect to Right Now’s income which is $50 million. As stated in exhibit 4, those costs range from $11. 5 million with $217 million and the normal cost is $155 million. However, for Gianforte the lowest value that he might offer is as worthy of the endeavor as forecasted toward Gianforte.
Options available

 • Firstly, the option for another IPO attempt would not be feasible because as per the case and the return on investment, such an attempt was not as per forecasted and incurred a loss because the investment required for an IPO is huge and previously this was not in the favor of Right now.
• The second attempt for an IPO could be disastrous because as stated in this case IPO was still inefficient and companies were not in favor of IPOs rather they were opting for some other strategies. Market position for IPOs was still deteriorated, and there were not many favorable signs in the marketplace. Sales Force .com had a huge impact over the years, which helped it to overcome the market’s inertia.
• It was unclear whether Right Now should go public without the same brand name a s it was confusing and on the contrary it was also a big question mark.

Similarly, as per the selected financial data from sales force.com,exhibit 8 shows that the net income is negative and shows a loss if such an attempt is decided.Therefore,it would not be worthwhile for making such a decision, hence the attempt for IPO would not be feasible because the current financial position of Right now is also not good and has been in a loss as showed in exhibit2.
Furthermore, the acquisitions and mergers are although,quite advantageous for businesses to grow,however they are in an acquisition.This is because the company that acquires a certain company allows that acquired company to use its name and that it has to work under some separate name, which is not good because customers then switch to competitor’s brand because their loyalty is disturbed. Due to this, they have to deal with some other business with new policies, procedures and strategies, which is time consuming,in other words they have to start dealing from scratch..................

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